Cboe Global Markets : Vestwell, A Retirement-Focused Fintech Company, Raises $30M Series B

Vestwell, A Retirement-Focused Fintech Company, Raises $30M Series B

Elizabeth Balboa 4/3/2019 8:08:01 AM

Vestwell Holdings, a fintech company competing in retirement and payroll solutions, announced Tuesday it raised $30 million in Series B funding to support investments in technology and client services.

What Happened

Goldman Sachs (NYSE: GS) led the round with additional input from the likes of Point 72, BNY Mellon, Nationwide, Allianz Life Ventures and Franklin Templeton. Primary Venture Partners and other earlier investors also increased their stakes.

'We were drawn to Vestwell because it has developed a modern and intuitive interface that empowers advisors to more efficiently manage customized retirement plans,' said Timothy J. O'Neill and Eric S. Lane, co-heads of Goldman Sachs' CIMD.

Why It's Important

Vestwell helps provide online platforms where companies can store and manage employees' 401(k) retirement plans, according to Reuters.

Vestwell is in scaling mode. Over the last year, the digital retirement platform recorded tenfold client growth and crafted multiple strategic alliances. The latter include partnerships with BNY Mellon, Allianz, Namely, Dimensional Fund Advisors, OnPay and Riskalyze.

'The market impact we've seen from Vestwell in the two short years since leading the seed investment in them is remarkable,' says Brooks Gibbins, Co-Founder and Managing Partner of FinTech Collective. 'Participants, employers, and channel partners have all validated Vestwell's approach, and we're thrilled to continue supporting industry change alongside them.'

What's Next

Management will announce additional strategic partners imminently.

Related Links:

Retirement Plans Made Easy With Vestwell

The 2018 Benzinga Global Fintech Awards Winners' Panel: How They Made Their Companies Attractive To Investors